* The A/S increase is a reason to Load shares for a Run !
Every time the VCs - Venture Capitalists, get there hands on large amounts of shares, they buy a run, and we can trade for profits !
An Authorized Share Increase is a win for the company, a win for the Venture capital firm, and a win for the educated pennyland trader, on the OTC.
The Strategy and Facts
Authorized Shares, has no bearing on the price.
The "Shares Authorized", is not used in any fundamental of financial calculation, to determine company value.
OTC companies only have two things, stock for sale and stories of progress.
The OTC process, is to trade the stock sales, and react to retails belief in the stories.
Dilution
What is Dilution?
Is it good, or bad ?
Dilution is when the company moves shares from the AS (authorized shares) to the OS (outstanding shares) or tradeable inventory, for cash investments in the company.
This means there are more shares at the same market price and reduces the size of the EPS.
It doesn't reduce the price or value of the stock. But many pennylanders think it does.
The value of more cash to a startup is huge! Cash gives them the ability to attempt to grow. Without the cash it can't. So logic says, the retail herd should be happy about dilution. After all, they want the company to grow don't they.
On the OTC, an Authorized Share Increase is the best news one can hear !
Not only does it give the company a chance at growth, it doesn't effect their EPS value one bit.
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